CBO is required by law to issue a report within 10 days of the end of a session of Congress that provides estimates of the limits (often called “caps”) on discretionary budget authority in effect for each fiscal year through 2021. CBO is also required to report whether, according to its estimates, enacted leg-islation for the current fiscal year has exceeded those caps; if the caps were exceeded, a sequestration (that is, a cellation of budgetary resources) would be required.
In CBO’s estimation, such a sequestration will not be required for 2015. However, the authority to determine whether a sequestration is required and, if so, exactly how to make the necessary cuts in budget authority rests with the Administration’s Office of Management and Budget (OMB). Those determinations are based on OMB’s own estimates of federal spending.